Annual ReportDecember 31, 2018

Community Involvement

Community Debit Card Program

Barbara Bush Children’s Hospital

United Way

Transit Angel Project

The LifeFlight Foundation

Westbrook Kids Safety Day

sbsavings.bank

Biddeford

Operations Center

Saco

South Portland

Old Orchard Beach

Portland

Scarborough

Westbrook

Robert C. Quentin President & CEO

Letter from the President I am pleased to report on another excellent year of performance for our bank. Success can be measured in many ways, but before I get into the outstanding financial accomplishments of the past year it seems appropriate to step back and reflect on who we are and why we do what we do. As a mutual savings bank, we are able to provide financial services at competitive rates with low fees, while balancing the responsibilities we have to our customers, our communities, our employees and the bank. We pride ourselves on delivering friendly and compassionate service, with a long history of “doing the right thing,” which is what we believe a mutual bank should be about. “In It Together” is much more than a branding catch phrase to us. It is our commitment to work with each other and our customers to provide the best possible products and services while being the best member of the community that we can be. We strive to do this consistently, in both robust and challenging economic times. We help our customers solve problems. Whether it involves structuring loan payment terms to match the ebbs and flows of a seasonal business, or helping to configure deposit accounts so that a customer’s needs are met, our flexibility has brought us strong, consistent growth. As I indicated earlier, 2018 was an exceptional year for the bank. Customer deposits grew nearly $40 million while loan balances increased $50 million, as more and more individuals and businesses appreciate our approach. We enjoyed an extremely successful year for our insurance subsidiary, P&C Insurance1, as well as our financial services division, S&B Financial Services2. We exercised good stewardship by keeping operating expenses under control while investing in the development of our dedicated employees and in our communities through charitable contributions of more than $500,000. All of that led to a record level for net earnings of $6.85 million. We are a community bank. We share common values with our customers and our employees. We care about people, about our communities, and about doing what is right. We are privileged and grateful to have the opportunity to work with customers in ways that are mutually beneficial.

1Insurance products and services offered by P&C Insurance are:

2Securities and insurance products are offered through Cetera Investment Services LLC, member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with Saco & Biddeford Savings Institution where investment services are offered. Investments are:

Not FDIC Insured No Bank Guarantee May Lose Value

Not FDIC Insured No Bank Guarantee May Lose Value

Of f icersLesley E. Andersen • Information Technology SpecialistFrancine A. Anton • VP, Loan OfficerStephanie J. Bailey • Assistant Branch ManagerBrian T. Ballute • SVP, Chief Financial Officer & TreasurerLynne M. Belanger • VP, Branch ManagerRosanne Bingham • Payroll SpecialistMelissa M. Boilard • VP, Human Resources GeneralistChad A. Boucher • AVP, Financial Operations ManagerKenda R. Bouffard • Retail Loan Processing SupervisorLisa L. Bowdler • AVP, Business Loans Project AdministratorKari B. Brawn • Customer Relationship OfficerBeth A. Caron • AVP, Compliance SpecialistJames P. Carter • Financial AdvisorWanda M. Chelate • Retail Loan Closing SupervisorBryan J. Christoforo • VP, Business Loan OfficerTheresa M. Cloutier • Teller SupervisorJean P. Cosgrove • Customer Care OfficerBrett M. Cragg • Senior Information Technology SpecialistKelly A. Currier • Customer Relationship OfficerJulie A. Cyr • AVP, Information Services SpecialistMatthew A. Cyr • SVP, Senior Financial Advisor/Program ManagerDennis M. Dalton • AVP, Loan OfficerPatrick S. DeCourcey • VP, Loan OfficerKatrina M. Desjardins • Assistant Branch ManagerAlison H. DiCarlo • VP, Learning & Development ManagerEric G. Doyon • VP, Business Credit Department ManagerLynn M. Duranceau-Tilley • VP, Retail Loan Underwriting ManagerDiane M. Dutremble • Credit Collection OfficerTroy A. Ellsmore • SVP, Director of Risk ManagementPhilip D. Fearon • SVP, Director of Business Loans & ServicesSandra S. Golash • AVP, Loan Operations SpecialistSarah A. Gonneville • AVP, Assistant Branch ManagerAndrew M. Goyet • Customer Relationship OfficerDavid A. Goyet • SVP, Collection Manager/Loan & Business Development OfficerAllison L. Graham • VP, Branch Administration OfficerTimothy E. Grant • Branch SupervisorAndrew P. Grantham • AVP, Core Operations SpecialistGinger D. Grantham • VP, Loan Operations/Projects AdministratorMatthew A. Grenier • AVP, Assistant Branch ManagerKevin P. Gwinn • Deposit Support ManagerMark R. Hodgdon • VP, Digital Banking ManagerDebra A. Houle • Customer Relationship OfficerJudith A. Hurrell • VP, Loan Review OfficerMichael L. Jean • VP, Business Loan OfficerWayne P. Johnson • Loan OfficerMark H. Jones • SVP, Director of LendingAndrew S. Kany • Loan OfficerWilliam S. Kany • SVP, Director of Legal & Governmental AffairsDiane M. Labrie • SVP, Director of Human ResourcesKaryn M. Labrie • Compliance SpecialistDawn M. Lambert • VP, Branch Manager Customer CareCarolyn L. Lamontagne • VP, Branch ManagerMarc A. Lamontagne • AVP, Loan OfficerAnthony M. LeBlanc • VP, Compliance ManagerMelanie J. Lee • VP, Branch ManagerDeAnn E. Lewis • VP, Information Security OfficerRonald E. Lincoln • Senior Information Technology SpecialistJulie A. LoPresti • Senior Digital Banking Specialist & ACH CoordinatorLouis J. McAuliffe • VP, Facilities/Security ManagerJennifer L. McCallum • Retail Loan Processing OfficerDenise A. McIntyre • AVP, Loan OfficerBonnie B. Miller • AVP, Wire Operations ManagerJudith A. Milliard • VP, Payment Operations & Information Services ManagerJohn P. Mondor • AVP, Marketing OfficerStephanie M. Paquet • VP, Audit ManagerAshley M. Parker • Customer Care OfficerJennifer L. Plourde • VP, Branch ManagerMichelle L. Prejean • Collection OfficerRobert C. Quentin • President & Chief Executive OfficerJoe G. Reardon • VP, Branch ManagerJeffrey W. Roberts • SVP, Director of Information TechnologyTodd J. Rodriguez • VP, Core Operations ManagerMaryjane Sawyer • Assistant Branch ManagerDouglas M. Sinclair • AVP, Assistant AuditorJeffrey R. St.Laurent • VP, Retail Lending ManagerJay S. Tilley • SVP, Director of OperationsRory E. Timmins • Customer Relationship OfficerTammy R. Tracy • AVP, Business Banking Office ManagerGary B. Trempe • AVP, Financial AdvisorTravis J. Vacchiano • Business Banking OfficerJeffrey M. Vachon • SVP, Director of Bank AdministrationKathleen A. Verrill • VP, Project ManagerJulie M. Villemaire • VP, Branch ManagerRebecca C. Waitley • Customer Relationship OfficerJena M. Walton • AVP, Retail Loan Servicing SupervisorShawn C. Walton • AVP, Assistant Branch ManagerJames M. Whelan • VP, Business Loan OfficerKathy C. Whitten • VP, Manager of Retail Loan AdministrationKathleen L. Williamson • Customer Relationship Officer

Saco & Biddeford Savings Institution and Subsidiaries

Consolidated Report of Condition (Unaudited)

Consolidated Report of Income (Unaudited)

Assets 12/31/18 12/31/17Cash and Due from Banks $11,971,405 $13,951,762

US Government and Agency Securities 79,013,395 87,562,546

Other Securities 32,723,381 39,073,356

Federal Funds Sold 3,040,000 3,672,000

Total Loans, Net of Allowance for Loan Losses 825,196,197 775,205,052

Bank Premises and Fixed Assets 15,844,153 15,927,366

Other Assets 21,260,768 22,367,034

TOTAL ASSETS $989,049,299 $957,759,116

Year ending December 31 2018 2017Interest on Loans $35,233,342 $32,092,861

Dividends and Interest on Securities and Federal Funds 3,795,979 3,293,673

TOTAL INTEREST INCOME 39,029,321 35,386,534

Interest on Deposits 6,910,754 4,723,327

Interest on Federal Home Loan Bank Borrowings 4,354,881 3,271,521

TOTAL INTEREST EXPENSE 11,265,635 7,994,848

NET INTEREST INCOME $27,763,686 $27,391,686

Liabilities and Surplus 12/31/18 12/31/17Total Deposits $658,317,023 $618,863,564

Federal Home Loan Bank Borrowings 212,872,790 225,734,248

Other Liabilities 6,960,711 7,667,526

Total Liabilities 878,150,524 852,265,338

Total Capital 110,898,775 105,493,778

TOTAL LIABILITIES AND SURPLUS $989,049,299 $957,759,116

Provision for Loan Losses 30,000 5,000

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 27,733,686 27,386,686

Other Operating Income 7,407,985 7,280,075

Other Operating Expense 27,502,884 26,542,236

NET INCOME BEFORE NET SECURITIES GAINS AND INCOME TAXES

7,638,787 8,124,525

Net Securities Gains 788,532 1,238,130

Income Taxes Expense 1,575,000 3,120,000

NET INCOME $6,852,319 $6,242,655

Front, L to R: Robert C. Quentin, Robert E. Wade (Chair), Mark L. PetersonBack, L to R: Morris L. Fisher, Joan R. Fink, Kevin P. Savage, Roland M. Eon, Eric A. Purvis, Susan B. Hadiaris

Letter from the Chair

Board of Directors

Robert F. Wade Chairman of the Board

Saco & Biddeford Savings achieved record earnings for the fourth time in the last five years. While hampered somewhat by a relatively flat yield curve, the success for 2018 was assisted by a reduced income tax rate and continued solid performance from a diversified revenue stream. Operating results will most likely not be as strong in 2019 as in recent years, as we expect the yield curve to remain flat and competitive pressures to be strong. Management is well aware of the environment in which we operate, and has planned accordingly. Another factor that will cause volatility in earnings going forward is the change in accounting that requires the recognition of unrealized gains and losses on stocks in our income statement. While this will likely make our reported earnings less predictable than in the past, it will be important to bear in mind that the economic results will be the same. We expect to attain $1 Billion in assets in 2019. The bank has a proud history of being a financially strong and independent community bank. Being such an institution makes the $1 billion milestone even more significant. All current and former associates should take pride in this achievement. Starting with the bank in 1964 as a part time teller, it is humbling for me to realize that 55 years later I now have the honor of being the Chairperson when the bank reaches $1 billion in assets. As I have stated in past letters, I am pleased and honored to be a part of this fine group of colleagues who have moved and are continuing to move this institution forward.

Daniel D. Cote • VP, Employee BenefitsJoshua D. Fearon • PresidentAndrea K. Todd • VP, Commercial LinesLynn M. Vigneault • VP, Personal LinesDouglas A. Willett • VP, Commercial Lines

Frederick J. Ahearn, IIIGerald F. ApplebeePhilip B. CurtisMary E. DonovanRoger S. Elliott

David S. AbramsonDonald J. BalluteDaniel E. BlaneyKimberly D. BoisvertLorraine P. BouchardLeo E. BourgeaultLucien A. ChantignyKerry T. Connell, O.D.Stacey J. CoteNancy E. CrowellRobert E. DanielsonBarbara J. DresserTroy A. EllsmoreRoland M. Eon

Roger S. Elliott

Shirley D. HondelJohn C. HoytAdelbert M. Jakeman, Jr.William JohnsonA. William Kany, Jr.

Joshua D. FearonPhilip D. FearonJoan R. FinkMorris L. FisherDavid A. GoyetJoshua D. HadiarisSusan B. HadiarisJames E. HarmonElizabeth HewesLinwood M. HigginsDavid H. HoweKristine L. HoytDiana L. HuotLeonard C. Hurrell

A. William Kany, Jr.

Virginia B. MoodyWinslow S. PillsburySarah-Jane PoliEdward D. Radley, Jr.Veronica M. Sheehan

Bryce W. IngrahamPierre J. JanelleEverett F. Johnson, Jr.Mark H. JonesWilliam S. KanyCarolyn L. LamontagneValerie R. LandryKaren B. LovellGary L. MarstonRene M. MenardPamela J. MohlinTimothy S. MurphyMichael A. MyrickJames T. Pate

David H. Howe

Gene C. ThompsonErwin C. WarrenLeroy I. Waycott

Mark L. PetersonEric A. PurvisRobert C. QuentinJeffrey M. QuirkWilliam D. SanfordKevin P. SavageDonald W. SharlandJeffrey M. VachonLynn M. VigneaultRobert F. WadeDaniel R. WarrenJessica M. YeatonMark L. Yellis

Honorary Directors

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P&C Insurance Of f icers

Honorary Corporators

Corporators

Karen Chasse, Community Outreach & Development Director, Biddeford & Dayton Schools

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